A divorce court in Texas can only divide community property. The Texas Constitution says that separate property cannot be taken away by the judge in a divorce.
Separate property consists of what was owned prior to marriage, or was received as a gift, or was inherited. Click here to read a detailed article on why the proceeds from a personal injury settlement are usually community property.
Income and pay received by either spouse during the marriage is community property up until the day the divorce is granted. Therefore, pay earned while a divorce case is pending is still community property.
Bonuses and commissions earned during the marriage but paid after divorce are community property.
Interest and dividends paid during the marriage are community property.
Income from separate property is community property. If a husband buys a rent house prior to marriage then the house is his separate property. However, rents received during the marriage from the separate property house are community property.
Income from a gift is separate property. If a wife is gifted a beach house from her grandmother during marriage, the house is the wife’s separate property, and if she rents the beach house out, then that rental income is separate property because it is income from a gift.
Oil and gas royalties are community property except royalties from separate property mineral interests are separate property.
Gambling winnings during a marriage are community property. That includes lottery winnings!
Property purchased during the marriage is community property. However, property that is purchased with separate property funds is separate property. For example, if the wife has $10,000 in cash prior to marriage, then a horse the wife buys during marriage with that cash would be her separate property.
Everything the spouses own at the time of divorce, is presumed to be separate property unless clear and convincing evidence is presented that prove an account or item is separate property. Click here to read a more detailed article on tracing separate property. Click here to read a much more detailed article on characterization of property in a divorce.
A pre-marital agreement or property agreement signed during marriage can change all of the above rules.